Delivering tax relief for Michigan

Tuesday

Apr 17, 2018 at 12:18 PMApr 17, 2018 at 12:26 PM

Tax Day is here along with the feeling of dread that comes with it. Each year, it serves as a stressful reminder of how much the Internal Revenue Service takes from what you worked long days and nights to earn.

This year, though, there is a silver lining: Taxpayers can finally say farewell to the old and broken tax code. After this tax season, it is gone for good. When President Trump signed the Tax Cuts and Jobs Act into law a few months ago, we enacted the most sweeping overhaul of the tax code in more than three decades.

Now when Americans file their taxes in April 2019, more of their hard-earned income will be safeguarded from taxation and they will benefit from a number of new provisions.

Under the new tax cut law, everyone will be able to take advantage of a significantly larger standard deduction. The deduction jumps up to $12,000 for individuals and $24,000 for married couples, nearly doubling the amount of people’s earnings that is tax-free.

With the Child Tax Credit increasing to $2,000 per child, working parents will see additional help with the day-to-day costs of raising a family.

Education saving accounts are strengthened under the new code, expanding opportunities for elementary, secondary and higher education and helping families better plan ahead.

Deductions for medical expenses, tuition and student loans, and charitable contributions are also maintained. So, too, are the Adoption Tax Credit, the mortgage interest deduction, and many more provisions that families rely on.

All told, next year a typical middle-income family of four will get a tax cut of more than $2,000. That’s more money in people’s pockets to pay bills, invest, or save for the future.

While all these reforms won’t be fully realized until the next tax filing season, the immediate benefits have kicked in and are starting to make a real difference. Nine out of ten Americans are already receiving a boost in take-home pay as a result of updated withholding tables that reflect lower tax rates across the board.

More than 500 businesses have taken steps to reward their employees with bonuses and enhanced benefits, including raising wages, expanding paid leave, enhancing 401(k) matches, and increasing education and workforce development opportunities. In just a few months, four million workers—and growing—have received more than $4 billion in bonuses.

As I travel the 7th District and meet with small businesses and job creators in our communities, there is a renewed sense of optimism. In fact, more than 93 percent of manufacturers have a positive economic outlook, according to a new survey by the National Association of Manufacturers. Among small manufacturers, optimism was at 94.5 percent, the highest level ever recorded in the 20-year history of the survey.

The early results have been overwhelmingly successful—and it is just the beginning. The old tax code discouraged innovation, punished success, and pushed jobs and factories overseas. All that is changing with the Tax Cuts and Jobs Act.

The new tax code increases America’s economic competitiveness and makes our nation a magnet for new jobs and investment. And it eases the tax burden on Main Street businesses, empowering them to grow, innovate, and create more jobs with better pay.

This Tax Day, let’s say goodbye to the old tax code, and hello to bigger paychecks and a healthier economy for years to come.

— U.S. Rep. Tim Walberg represents Michigan’s 7th Congressional District and is a member of the House Energy and Commerce Committee and the House Education and the Workforce Committee.

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